“Despite broad-based weakness in demand, we were able to deliver
sequential revenue growth in line with our prior projections,” said Dr.
Ted Tewksbury, president and CEO of IDT. “New product revenue increased
to over 17 percent of the total, up from 14 percent in the prior
quarter, driven by record revenue from Rapid IO switching solutions,
continued growth in PCI Express switching, and initial sales from new
product categories like enterprise flash controllers, high-speed data
converters and wireless power solutions.”

“Record non-GAAP gross margins of 59.4 percent combined with an
acceleration of our cost reduction program enabled us to achieve
non-GAAP operating margins of 12 percent.”

“Customer demand slowed significantly in the month of September for IDT
as well as the overall semiconductor sector, and has remained soft in
October. Even though we're experiencing cautious ordering patterns from
customers due to the uncertain macroeconomic environment, we believe our
new product traction and continued focus on cost controls will enable us
to reach our fiscal 2014 operating margin targets.”

Recent Highlights

IDT recently announced:

Wireless Power

Qualcomm has selected IDT as its silicon partner to develop an
integrated receiver IC for Qualcomm's wireless charging solution. The
chipset will be designed to meet the requirements of Qualcomm's
WiPower™, a new near-field magnetic resonance technology that provides
spatial freedom for charging consumer electronics, mobile phones, and
other battery-powered/low-power direct-charge devices.

Intel has selected IDT to develop an integrated transmitter and
receiver chipset for Intel's wireless charging technology based on
resonance technology. Wireless charging ICs by IDT will provide
industry-leading size and cost reduction, while simplifying product
development and integration. Intel, along with IDT, aims to deliver
validated reference designs that are targeted for deployment in
Ultrabooks™, all-in-one (AiO) PCs, smartphones, and standalone
chargers.

Its wireless power transmitter and receiver solutions have been
selected by Primax Electronics Ltd., a leading global supplier of
after-market wireless charging accessories for tier one mobile phone
OEMs.

It has become a member of the Alliance for Wireless Power (A4WP), an
independently operated organization composed of global wireless power
and technology industry leaders, including Samsung and Qualcomm.

The industry's first NVMe enterprise non-volatile DRAM (NV-DRAM)
controller with native support for PCIe Gen 3. The new NVMe NV-DRAM
controller expands upon IDT's previously announced NVMe flash
controller family to provide standards-based, high-density,
high-performance PCIe-attached NV-DRAM solutions built around a
combination of DRAM and NAND flash devices.

The industry's lowest-power DDR3 LRDIMM memory buffer and the first
capable of operating with transfer speeds up to 1866 megatransfers per
second (MT/s). The new device affirms IDT's leadership in memory
interface solutions by advancing the top data transfer rates of DDR3
LRDIMMs and allowing system makers to benefit from increased memory
capacity at higher speeds.

The world's first DDR4 register and temperature sensor that meet the
industry's stringent performance requirements. The new products are
designed to facilitate the next generation of DRAM modules, including
both registered dual inline memory modules (RDIMMs) and load-reduced
DIMMs (LRDIMMs), to enable advancements in server and storage
sub-system performance, scalability and power efficiency.

The world's lowest-power PCI Express® timing family. The new family of
buffers and synthesizers offer unprecedented power savings and
integration for communications, computing, and consumer markets.

The following highlights the Company's financial performance on both a
GAAP and supplemental non-GAAP basis. The Company provides supplemental
information regarding its operating performance on a non-GAAP basis that
excludes certain gains, losses and charges which occur relatively
infrequently and which management considers to be outside our core
operating results. Non-GAAP results are not in accordance with GAAP and
may not be comparable to non-GAAP information provided by other
companies. Non-GAAP information should be considered a supplement to,
and not a substitute for, financial statements prepared in accordance
with GAAP. A complete reconciliation of GAAP to non-GAAP results from
continuing operations is attached to this press release.

Revenue from continuing operations for the fiscal second quarter of
2013 was $133.4 million, compared with $138.3 million reported in the
same period one year ago.

GAAP net loss from continuing operations for the fiscal second quarter
of 2013 was $(0.7) million, or breakeven per diluted share, versus
GAAP net income of $8.1 million or $0.06 per diluted share in the same
period one year ago. Fiscal second quarter 2013 GAAP results include
$12.7 million in acquisition and restructuring related charges, $3.6
million in stock-based compensation, and $3.1 million in benefits from
tax effects.

Non-GAAP net income from continuing operations for the fiscal second
quarter of 2013 was $12.6 million or $0.09 per diluted share, compared
with non-GAAP net income from continuing operations of $17.2 million
or $0.12 per diluted share reported in the same period one year ago.

GAAP gross profit for the fiscal second quarter of 2013 was $74.6
million, or 55.9 percent, compared with GAAP gross profit of $73.6
million, or 53.2 percent, reported in the same period one year ago.
Non-GAAP gross profit for the fiscal second quarter of 2013 was $79.2
million, or 59.4 percent, compared with non-GAAP gross profit of $78.1
million, or 56.5 percent, reported in the same period one year ago.

GAAP R&D expense for the fiscal second quarter of 2013 was $42.4
million, compared with GAAP R&D expense of $39.2 million reported in
the same period one year ago. Non-GAAP R&D expense for the fiscal
second quarter of 2013 was $39.1 million, compared with non-GAAP R&D
of $37.6 million in the same period one year ago.

GAAP SG&A expense for the fiscal second quarter of 2013 was $32.8
million, compared with GAAP SG&A expense of $24.9 million in the same
period one year ago. Non-GAAP SG&A expense for the fiscal second
quarter of 2013 was $23.8 million, compared with non-GAAP SG&A expense
of $22.6 million in the same period one year ago.

Webcast and Conference Call Information

Investors can listen to a live or replay webcast of the Company's
quarterly financial conference call at http://www.IDT.com.
The live webcast will begin at 1:30 p.m. Pacific time on October 29,
2012. The webcast replay will be available after 5 p.m. Pacific time on
October 29, 2012.

Investors can also listen to the live call at 1:30 p.m. Pacific time on
October 29, 2012 by calling (800) 230-1059 or (612) 234-9960. The
conference call replay will be available after 5 p.m. Pacific time on
October 29, 2012 through 11:59 p.m. Pacific time on November 5, 2012 at
(800) 475-6701 or (320) 365-3844. The access code is 266766.

About IDT

Integrated Device Technology, Inc., the Analog and Digital Company™,
develops system-level solutions that optimize its customers'
applications. IDT uses its market leadership in timing, serial switching
and interfaces, and adds analog and system expertise to provide complete
application-optimized, mixed-signal solutions for the communications,
computing and consumer segments. Headquartered in San Jose, Calif., IDT
has design, manufacturing and sales facilities throughout the world. IDT
stock is traded on the NASDAQ Global Select Stock Market® under the
symbol “IDTI.” Additional information about IDT is accessible at www.IDT.com.
Follow IDT on Facebook,
LinkedIn,
Twitter,
and YouTube.

Additional Information

These materials are for informational purposes only and shall not
constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. Any offer with respect to the acquisition of PLX
Technology will only be made through the prospectus, which is part of
the registration statement on Form S-4, which contains an offer to
purchase, form of letter of transmittal and other documents relating to
the exchange offer, as well as the Tender Offer Statement on Schedule
TO, (collectively, and as amended and supplemented from time to time,
the “Exchange Offer Materials”), each initially filed with the U.S.
Securities and Exchange Commission (the “SEC”) by IDT on May 22, 2012.
The registration statement has not yet become effective. In addition,
PLX Technology filed with the SEC on May 22, 2012 a
solicitation/recommendation statement on Schedule 14D-9 (as amended and
supplemented from time to time, the “Schedule 14D-9”) with respect to
the exchange offer. Investors and security holders are urged to
carefully read these documents and the other documents relating to the
transactions because these documents contain important information
relating to the exchange offer and related transactions. Investors and
security holders may obtain a free copy of these documents, as filed
with the SEC, and other annual, quarterly and special reports and other
information filed with the SEC by IDT or PLX Technology, at the SEC's
website at www.sec.gov.
In addition, such materials will be available from IDT or PLX
Technology, or by calling Innisfree M&A Incorporated, the information
agent for the exchange offer, toll-free at (877) 456-3463 (banks and
brokers may call collect at (212) 750-5833).

Forward Looking Statements

Investors are cautioned that forward-looking statements in this release,
including but not limited to statements regarding demand for Company
products, anticipated trends in Company sales, expenses and profits,
involve a number of risks and uncertainties that could cause actual
results to differ materially from current expectations. Risks include,
but are not limited to, global business and economic conditions,
fluctuations in product demand, manufacturing capacity and costs,
inventory management, competition, pricing, patent and other
intellectual property rights of third parties, timely development and
introduction of new products and manufacturing processes, dependence on
one or more customers for a significant portion of sales, successful
integration of acquired businesses and technology, availability of
capital, cash flow and other risk factors detailed in the Company's
Securities and Exchange Commission filings. The Company urges investors
to review in detail the risks and uncertainties in the Company's
Securities and Exchange Commission filings, including but not limited to
the Annual Report on Form 10-K for the fiscal year ended April 1, 2012.
All forward-looking statements are made as of the date of this release
and the Company disclaims any duty to update such statements.

Non-GAAP Reporting

The Company presents non-GAAP financial measures because the investor
community uses non-GAAP results in its analysis and comparison of
historical results and projections of the Company's future operating
results. These non-GAAP results exclude restructuring-related costs,
acquisition and divestiture-related charges, share-based compensation
expense, results from discontinued operations, stockholder expenses and
certain other expenses and benefits. Management uses these non-GAAP
measures to manage and assess the profitability of the business. These
non-GAAP results are also consistent with another way management
internally analyzes IDT's results and may be useful to investor
community. The Company has reconciled non-GAAP results to the most
directly comparable GAAP financial measures in the financial tables at
the end of this press release.

Reference to these non-GAAP results should be considered in addition to
results that are prepared under general accepted accounting standards in
the United States (GAAP), but should not be considered a substitute for
results that are presented in accordance with GAAP. It should also be
noted that IDT's non-GAAP information may be different from the non-GAAP
information provided by other companies.

IDT and the IDT logo are trademarks or registered trademarks of
Integrated Device Technology, Inc. All other brands, product names and
marks are or may be trademarks or registered trademarks used to identify
products or services of their respective owners.

INTEGRATED DEVICE TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Six Months Ended

September 30,

July 1,

October 2,

September 30,

October 2,

2012

2012

2011 (1)

2012

2011 (1)

Revenues

$

133,401

$

130,161

$

138,318

$

263,562

$

287,603

Cost of revenues

58,774

57,648

64,685

116,422

134,534

Gross profit

74,627

72,513

73,633

147,140

153,069

Operating expenses:

Research and development

42,387

41,544

39,184

83,931

78,999

Selling, general and administrative

32,750

36,412

24,888

69,162

50,817

Total operating expenses

75,137

77,956

64,072

153,093

129,816

Operating income

(510

)

(5,443

)

9,561

(5,953

)

23,253

Other-than-temporary impairment loss on investments

-

-

-

-

-

Gain on sale of wafer fab facility

-

-

-

-

Other income (expense), net

(206

)

2,000

(1,828

)

1,794

(1,784

)

Income (loss) from continuing operations before income taxes

(716

)

(3,443

)

7,733

(4,159

)

21,469

Provision (benefit) for income taxes

(33

)

(3,986

)

(367

)

(4,019

)

600

Net income (loss) from continuing operations

(683

)

543

8,100

(140

)

20,869

Discontinued operations:

Gain from divestiture

886

-

45,939

886

45,939

Loss from discontinued operations

(273

)

(4,858

)

(7,352

)

(5,131

)

(14,996

)

Provision (benefit) for income taxes

3

-

(60

)

3

(89

)

Net income (loss) from discontinued operations

610

(4,858

)

38,647

(4,248

)

31,032

Net income (loss)

$

(73

)

$

(4,315

)

$

46,747

$

(4,388

)

$

51,901

Basic net income (loss) per share continuing operations

$

-

$

-

$

0.06

$

-

$

0.14

Basic net income (loss) per share discontinued operations

-

(0.03

)

0.26

(0.03

)

0.21

Basic net income (loss) per share

$

-

$

(0.03

)

$

0.32

$

(0.03

)

$

0.35

Diluted net income (loss) per share continuing operations

$

-

$

-

$

0.06

$

-

$

0.14

Diluted net income (loss) per share discontinued operations

-

(0.03

)

0.26

(0.03

)

0.21

Diluted net income (loss) per share

$

-

$

(0.03

)

$

0.32

$

(0.03

)

$

0.35

Weighted average shares:

Basic

143,519

142,595

144,682

143,005

146,249

Diluted

143,519

143,984

146,169

143,005

148,686

1)

The Company's prior period financial results have been revised to
reflect an immaterial correction. During the third quarter of
fiscal 2012 the Company identified errors related to its
accounting for certain accrued employee retention costs and other
accrued liabilities. The Company assessed the materiality of these
errors individually and in the aggregate on prior periods'
financial statements in accordance with the SEC's Staff Accounting
Bulletin No. 99 (“SAB 99”), and concluded that the errors were not
material to any of its prior annual or interim financial
statements. As permitted by the SEC's Staff Accounting Bulletin
No. 108 (“SAB 108”), the Company elected to revise previously
issued consolidated financial statements the next time they are
filed.

As a result of the revisions, net income for the three and six
months ended October 2, 2011 decreased by $0.3 million and $2.8
million, respectively.

INTEGRATED DEVICE TECHNOLOGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Six Months Ended

September 30,

July 1,

October 2,

September 30,

October 2,

2012

2012

2011

2012

2011

GAAP net income (loss) from continuing operations

$

(683

)

$

543

$

8,100

$

(140

)

$

20,869

GAAP diluted net income (loss) per share continuing operations

$

-

$

-

$

0.06

$

-

$

0.14

Acquisition related:

Amortization of acquisition related intangibles

5,573

4,891

3,861

10,464

7,989

Acquisition related legal and consulting fees (1)

3,630

4,836

-

8,466

-

Other acquisition related costs (2)

1,200

1,800

-

3,000

-

Assets impairment (3)

(59

)

(59

)

(92

)

(118

)

(182

)

Fair market value adjustment to acquired inventory sold

100

358

-

458

-

Restructuring related:

Severance and retention costs

2,237

715

816

2,952

2,603

Facility closure costs (4)

34

13

(5

)

47

23

Fabrication production transfer costs (5)

-

-

816

-

2,661

Gain on sale of fabrication facility

-

-

-

-

-

Other:

Other-than-temporary impairment loss on investments

-

-

-

-

-

Stock-based compensation expense

3,617

3,122

4,282

6,739

8,054

Expenses related to stockholder activities (6)

38

2,576

-

2,614

-

Compensation expense (benefit)—deferred compensation plan (7)

480

(136

)

(1,337

)

344

(1,281

)

Loss (gain) on deferred compensation plan securities (7)

(477

)

314

1,359

(163

)

1,314

Life insurance proceeds received (7)

-

(2,313

)

-

(2,313

)

-

Tax effects of Non-GAAP adjustments

(3,076

)

(5,677

)

(594

)

(8,753

)

(1,066

)

Non-GAAP net income from continuing operations

$

12,614

$

10,983

$

17,206

$

23,597

$

40,984

GAAP weighted average shares - diluted

143,519

143,984

146,169

143,005

148,686

Non-GAAP adjustment

2,907

1,716

1,994

2,979

1,840

Non-GAAP weighted average shares - diluted (8)

146,426

145,700

148,163

145,984

150,526

Non-GAAP diluted net income per share continuing operations

$

0.09

$

0.08

$

0.12

$

0.16

$

0.27

GAAP gross profit

74,627

72,513

73,633

147,140

153,069

Acquisition and divestiture related:

Amortization of acquisition related intangibles

3,890

3,622

2,917

7,512

6,101

Acquisition related legal and consulting fees (1)

-

-

-

-

-

Assets impairment (3)

(59

)

(59

)

(92

)

(118

)

(182

)

Fair market value adjustment to acquired inventory sold

100

358

-

458

-

Restructuring related:

Severance and retention costs

306

301

670

607

1,960

Facility closure costs (4)

3

6

(4

)

9

(2

)

Fabrication production transfer costs (5)

-

-

816

-

2,661

Other:

Compensation expense (benefit)—deferred compensation plan (7)

120

(34

)

(289

)

86

(277

)

Stock-based compensation expense

252

303

453

555

880

Non-GAAP gross profit

79,239

77,010

78,104

156,249

164,210

GAAP R&D expenses:

42,387

41,544

39,184

83,931

78,999

Restructuring related:

Severance and retention costs

(1,070

)

(340

)

(126

)

(1,410

)

(603

)

Facility closure costs (4)

(28

)

(4

)

5

(32

)

(10

)

Other:

Compensation expense (benefit)—deferred compensation plan (7)

(290

)

82

867

(208

)

830

Stock-based compensation expense

(1,873

)

(1,542

)

(2,320

)

(3,415

)

(4,319

)

Non-GAAP R&D expenses

39,126

39,740

37,610

78,866

74,897

GAAP SG&A expenses:

32,750

36,412

24,888

69,162

50,817

Acquisition and divestiture related:

Amortization of acquisition related intangibles

(1,683

)

(1,269

)

(944

)

(2,952

)

(1,888

)

Acquisition related legal and consulting fees (1)

(3,630

)

(4,836

)

-

(8,466

)

-

Other acquisition related costs (2)

(1,200

)

(1,800

)

-

(3,000

)

Restructuring related:

Severance and retention costs

(861

)

(74

)

(20

)

(935

)

(40

)

Facility closure costs (4)

(3

)

(3

)

(4

)

(6

)

(15

)

Other:

Compensation expense (benefit)—deferred compensation plan (7)

(70

)

20

181

(50

)

174

Stock-based compensation expense

(1,492

)

(1,277

)

(1,509

)

(2,769

)

(2,855

)

Expenses related to stockholder activities (6)

(38

)

(2,576

)

-

(2,614

)

-

Non-GAAP SG&A expenses

23,773

24,597

22,592

48,370

46,193

GAAP interest income and other, net

(206

)

2,000

(1,828

)

1,794

(1,784

)

Loss (gain) on deferred compensation plan securities (7)

(477

)

314

1,359

(163

)

1,314

Life insurance proceeds received (7)

-

(2,313

)

-

(2,313

)

-

Non-GAAP interest income and other, net

(683

)

1

(469

)

(682

)

(470

)

GAAP provision (benefit) for income taxes continuing operations

(33

)

(3,986

)

(367

)

(4,019

)

600

Tax effects of Non-GAAP adjustments (7)

3,076

5,677

594

8,753

1,066

Non-GAAP provision (benefit) for income taxes continuing
operations

3,043

1,691

227

4,734

1,666

(1) Consists of costs incurred in connection with merger and
acquisition-related activities, including legal, accounting and
other consulting fees.

(3) Consists of an impairment charge related to a note receivable
and subsequent recoveries.

(4) Consists of ongoing costs associated with the exit of our leased
and owned facilities.

(5) Consists of costs incurred in connection with the transition of
our wafer fabrication processes in our Oregon facility to TSMC.

(6) This adjustment reflects the expenses in response to our
activities and inquiries of Starboard Value LP.

(7) Consists of gains and losses on marketable equity securities
related to our deferred compensation arrangements and the changes in
the fair value of the assets in a separate trust that is invested in
Corporate owned life insurance under our deferred compensation plan
and life insurance proceeds received to this trust.

(8) For purposes of calculating non-GAAP diluted net income per
share, the GAAP diluted weighted average shares outstanding is
adjusted to exclude the benefits of stock compensation expense
attributable to future services not yet recognized in the financial
statements that are treated as proceeds assumed to be used to
repurchase shares under the GAAP treasury method.